Kita, the carbon insurance specialist and Lloyd’s of London coverholder, is proud to announce today its Active Risk Monitoring services for the carbon markets. Kita has been providing these services since March 2024 to select stakeholders and is now broadening its reach to a wider span of the market.
Kita models risk in ex-ante projects daily as part of its insurance underwriting, which focuses on enabling investment into early-stage projects. Via this process, the business has collated a proprietary risk model, built on robust data and industry insightscovering a wide variety of projects across the market. This data model is used in Kita’s Active Risk Monitoring services to assess projects on a comparative basis, and near real-time monitoring ensures that the risk model is continuously adjusted to provide the most accurate and up-to-date analysis possible.
Kita’s Active Risk Monitoring services aim to support informed decision-making in investment processes. Our range of services include:
- Risk Assessments: objective, cost-effective assessment of project risk and insurability across key categories, including commercial, technical and political risks, considering thousands of data points, including market benchmarks and specific project properties. Risk Assessments can be used by buyers/investors at the due diligence stage, to help determine which project to invest in, or by project developers to demonstrate strong risk management to potential investors.
2. Portfolio Assessments: for companies holding an existing portfolio of carbon credits, Kita provides ongoing risk assessment and reporting on probabilities of loss and potential levels of shortfall at the portfolio-level, as well as sub-risk and carbon type categories. These probabilities and assessments are estimates based on current data and modelling methodologies, which are subject to change as new information becomes available.
3. Ongoing Health Checks: for carbon projects that Kita has insured, clients receive regular ‘health checks’ as a value-add, enabling confidence in ongoing performance, or quick identification should any problems arise that need to be addressed. This demonstrates how insurance companies can provide cost-effective risk management that supports high-performing projects.
As insurance becomes more commonplace across the carbon markets, understanding insurable/uninsurable risks at the project-level, along with maintaining strong risk management throughout project lifecycles, is becoming increasingly important. Kita is proud to expand this range of services to the market.
“One of the key benefits of insurance in any market is its ability to not just protect against things going wrong, but to use underwriting data to provide proactive risk management to help things go right. Kita is delighted to bring this cost-effective risk management to the carbon markets in the form of our Active Risk Monitoring services. By offering an additional insurability lens on due diligence and quality assessment, plus proactivity in ongoing risk management to mitigate risks before they occur, the provision of Kita’s Active Risk Monitoring services can help channel significant global capital towards high-quality carbon projects.”
Natalia Dorfman, CEO and Co-Founder, Kita
“In carbon projects, the standalone nature of a project’s quality isn’t enough. It is important to understand how that project compares against its peers. Using market benchmarks and our comprehensive proprietary data sets gleaned from our long-standing insurance work with ex-ante projects, we can do just this and we look forward to bringing these services to a wider range of market participants.”
Paul Young, CTO and Co-Founder, Kita
Read more: TMK And Kita Partner On New Political Risk Insurance For CO2 Credit Projects
